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Great article! One can only hope that your recommendations regarding tax reform will take root. Since you mentioned gold...

Like many casual investors, I have been eying the prospect of buying gold to help protect my savings with the understanding that nothing is ever 100% safe. I began researching the market via the Internet and eventually began subscribing to several newsletters. The more I read, the more frustrated I became as the analysis and charts constantly led to the conclusion that the bull market was over-due. But, the price continued down.

I discovered that investment gold sources tend to focus on their expertise – investment gold. The problem is that they tend to miss two huge market variables; jewelry demand and supply through the scrap market.

In order to save other casual investors some time in making sense of the market I suggest that interested parties read the two following free reputable market analysis:

1) World Gold Council – Great place for many gold statistics and analysis
Be sure to download “Gold Demand Trends” (requires registration) or I can send you a .pdf

2) ERSTE Bank Special Gold Report

Some highlights:

- Global gold jewelry demand dropped around 21% in the first quarter 08 compared with 07 YTD. This is an important key; over the last 5 years, gold jewelry represented over 60% of the total gold demand.

- Global industrial, electrical and dental demand for gold fell around 8%. These sectors traditionally represent close to 20% of the gold demand.

- Global scrap supply was up around 30% through in the 1st quarter 08. In past years, scrap gold accounted for around 23% of total supply.

- ETF demand doubled in the 1st quarter 08, compared to YTD 07. ETF demand came at the expense of other gold investments. Total investment demand relatively flat.

The interesting thing is that when the market finishes the price correction, gold demand will again surge and the scrap demand will diminish. Of course, anyone following gold is aware of the collapse of the juniors (exploration companies that explore for new deposits, or they may be a small mining companies with only one or two mines in operation) is reducing mining capacity. After the current correction, mining capacity will not be able to sustain more than a modest gain in demand.

There is a lot more to the story…hope you enjoy the links.


I agree. Gold is the alternative to everything. The FED probably doesnt care either. Better off killing excess liquidity with Gold, than driving up food/energy. Gold hurts no one, creates mining jobs, and enforces discipline.


Most gold jewelry purchased in the world comes from India. And they do not view gold as jewelry, but as sound money that is accumulated over time. Hence the reason they only buy pure 22k or 24k jewelry, never 14k %58.6 pure. Cool thing about gold is you can wear your wealth.

Elaine Meinel Supkis

Bad thing is, gold jewelry is easy to steal. Trust me on that one, big time. As a female who has had this happen.


WASHINGTON (AP) -- The government says the federal budget deficit soared in July, pushed higher by economic stimulus payments and $15 billion in outlays to protect depositors at failed banks.

Two points of interest.
1. The amount spent to save depositors has now been reveled to be 15 billion dollars.

2. The 15 billion came from the Federal Government not the FDIC Trust Fund.
My guess is there is no FDIC Trust Fund. It's been looted like every trust fund the Government could get their hands on.
Can you say Social Security?

Futhermore, it is my understanding that FDIC has marked Indy Max's mortage book at 50 cents on the dollar. Anyone else think it will prove to be 5 cents on the dollar?


This is a preview of things to come. after further weakening of economy, and 2004 style macro economy running full blast.

So 2010 budget deficit is going to hit $1T/year? yikes.


Budget deficit hits more than $102 billion -- in a month

The Treasury Department reported today that July's federal budget deficit was $102.8 billion -- or nearly triple the $36.4 billion deficit recorded in July 2007. That's even larger than the $97 billion deficit Wall Street economists had been predicting, according to the Associated Press.


What will gold buy you? Six weeks. After that, the crowbar falls in. You get about six weeks to trade with gold.

After that, it's about rice and beans. And you better hide them beans! 'Cause the police/ military will want all the beans too.

The good thing about rice and beans is; they are immune to metal detectors! This is sound advice! Don't ignore the reality here. They will want anything you've got!


I once saw the end of the rainbow. This thing ran right into the earth, right into a patch of grass. The grass glowed with the beauty of the rainbow. Somewhere in the back of my head, there was the old tale about finding the pot of gold. But the moment was much too sacred. It became a part of my life. Way too precious for mere profit. Rainbows do fall to the earth. And so will I. And you. Do not forsake that which is sacred. What you are is what the sacred is about. Your being is the temple.

Elaine Meinel Supkis

That rainbow was from last week when we got clobbered by over 5" of rain. It has been very rainy.

About the FDIC: I believe it is broke. But they lie about nearly everything so it is hard to see if this is true. But I am betting it is true, Nsaxon. Thanks for the information.

I have a lot of data and charts and graphs lined up for tomorrow. Interesting news. As I read it, I think, 'Why can't we arrest everyone who negotiated our free trade garbage?'


John Williams "Shadow Statistics" shows an inflation rate of over 12% and we know the current flood of liquidity will be gasoline on the fire, burning our buying power and consuming what's left of our economy.

A temporary smoke screen for sure. The sad reality is that the prosperity and living standards of 300,000 million Americans is being partially stolen but mostly destroyed by a government and fed gone mad with greed.


You missed the good news! Novolipetsk is buying John Maneely Steel from the Carlyle Group. They make steel tubes - pipes, artillery barrels and such, Anyhow, it is good to see our former rival now buying up our heavy industry, the world is such a different place, really emerging and emergent even. Even better, the Carlyle group is about to profit three billion US dollars on the transaction, having acquired Maneely two years ago from the family. That's what I call good business! Go Carlyle! Of course, America will profit even more. Merril Lynch is advising on the deal, as is JPMorgan, Goldman and GMP securities. Even such bitter rivals are willing to be social when it comes to a good cause. And everyone is asking how the investment banks will make money? Hah, see now?
Oh yes, Mitsubishi Bank just bought Union Bank of California, with 275 branches. Well the rest of the 35 percent they did not already own. Blue skies!

Sic semper tyrannis


Shades of Argentina and Asian Dollar Crisis - the foreign banks came in and bought everything while IMF force cuts to all sorts of social spending driving up the crime rate and deaths.

Soon the rich will retreat to enclaves or leave for greener pastures leaving the rest to fend for themselves the best they can.


By Anuchit Nguyen Aug. 13 (Bloomberg) -- General Motors Corp., the world's largest automaker, said it will invest $445 million for a new diesel-engine factory in Thailand and to upgrade vehicle assembly facilities as it seeks to boost growth in Asia.


I agree with Calvino and OC that the big dollars to be made are now will selling off the carcass of the US economy. Treasonous.

'Sic semper tyrannis' is a most excellent phrase. Let's see if anyone can find a connection between the de-industrialization of the US and this scientific research the same Sick Tempered Tyrants, who love eugenics and depopulation, have most certainly sponsored?

Looks like the peasants are despoiling the fox hunting grounds...we must do something about this Eliza...


Devastating declines of amphibian species around the world are a sign of a biodiversity disaster larger than just the deaths of frogs and salamanders, University of California, Berkeley scientists said Tuesday.

Researchers said substantial die-offs of amphibians and other plant and animal species add up to a new mass extinction facing the planet, the scientists said in an online article this week in the journal Proceedings of the National Academy of Sciences.

"There's no question that we are in a mass extinction spasm right now," said David Wake, professor of integrative biology at UC Berkeley. "Amphibians have been around for about 250 million years. They made it through when the dinosaurs didn't. The fact that they're cutting out now should be a lesson for us."


"Inflation, manufacturing contraction and property bubble haunts Chinese government"...



You may well like this link Elaine, another fearless blogger like yourself...



GK, I think I stand corrected by you. I have witnessed the awesome power of the PPT.


"Kuwait Readying for War in Gulf?"...


Elaine Meinel Supkis

Thanks for all the information! It is hard, keeping up!

YES, WE ARE SEEING TREASON HERE. And of course, to fight off the hag, Inflation, She Who Flies Faster Than Thought, our industrialists and our paper pushing industries are all going offshore as fast as humanly possible. The US people have to figure out, the dire enemies at the gates are not the Russians, certainly not Iran Kitty, nor the Chinese or Japanese or Indians: they are our own rulers, our own politicians, our own media which, incidentally, is increasingly owned by foreigners anyway.

We are trapped in this matrix which is set up to loot this country and drive us into IMF debt.

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